Sporting Goods leaders not content to sit on sidelines

Wal-Mart and Home Depot did it. So did Target, Kohl’s and Walgreens. Some of the biggest and most successful names in retail cut expansion plans this year and for next year as well thanks largely to an uncertain outlook regarding the severity and duration of nation’s economic troubles.

A notable exception to this trend can be found in the sporting goods channel where it is full steam ahead for the nation’s two largest full-line operators. Dick’s Sporting Goods and The Sports Authority are intent on bringing to the fragmented sporting goods marketplace the type of duopoly that exists in home improvement, pharmacy and discount channel. To do so, both companies are committed to robust store opening programs during the current year despite exposure to discretionary product categories cautious consumers can easily defer or avoid purchasing entirely.

The Sports Authority in mid-August opened 11 stores in eight states giving it a total of 441 units in 45 states. Those openings are among 37 new stores planned for this year, according to the privately held company.

“Our goal is to be aggressive in meeting the need and demand for our products and services throughout this country,” David Campisi, president of The Sports Authority said when the openings were announced. “We have already established ourselves as the preeminent sporting goods retailer in these markets, and the growth opportunity continues to be attractive. We’re excited about expanding our footprint and look forward to success in every one of these stores.”

Dick’s is thinking the same thing as it too has ambitious plans for this year. The company opened 17 stores during the first half of the year and plans a strong finish to its 2008 expansion program by adding 26 new stores in the third quarter, giving the company 43 new units for the year. Those openings, plus the conversion of the first of 15 Chick’s Sporting Goods stores acquired last year, will give Dick’s a year-end total of 384 stores. The company also operates 84 Golf Galaxy stores.

Dick’s president, ceo and chairman Ed Stack has acknowledged that current economic conditions are challenging and he expects consumers will maintain their cautious spending behavior next year, but that has not deterred the company from maintaining its growth trajectory.

“We continue to recognize that this is a great opportunity to gain market share and we’ll continue to focus on our primary customer, the core athlete and outdoor enthusiast, while working with our vendors to provide unique and exclusive products,” Stack said when Dick’s reported its second-quarter results.

Neither company has disclosed its growth plans for 2009, but Dick’s has come the closest as it points to the what it sees as the long-term potential to operate 800 stores nationwide. The company recently opened its third distribution center located in Atlanta, giving it the distribution capacity to serve up to 670 stores. The Sports Authority has operated out of the limelight since 2006 when it was taken private and as such is under no obligation to share any information regarding growth plans.